Skip to main content

Pros and Cons of Cash on Delivery payment in E-commerce!!!

By
Cash on Delivery payment in E-tailing is  the most preferred form of payment by the customers these days. Cash on Delivery option is not available in many countries. But some countries in Asia like India, Pakistan, Bangladesh, Vietnam, Thailand, Nepal etc. support Cash on Delivery option in E-tailing.

 These are the pros of Cash on Delivery payment:
  • Cash on Delivery option is supported by many E-commerce sites in some countries of Asia, India being a part of it. Cash on Delivery (COD) is preferred by online buyers who would like to check the product before paying for it.  This is advantageous for the customers as they can check the product before paying for it.
  • Another advantage of COD is that many people in rural areas of India and many other countries who do not have credit cards and debit cards can buy products online.
  • COD is supported by many E-commerce sites to attract  online buyers who are not comfortable  to reveal their credit or debit card details online.
Cons of Cash on Delivery payment:
  • Some people return the products to the service provider who deliver the products. These products have to be reshipped to the E-commerce sites for which the service provider charges. But the customer does not pay the reshipping charges and the E-commerce sites have to bear these charges.
  • Another disadvantage is that some times there can be fraud orders as the Cash on delivery payment method does not need proofs while buying which is a loss to the E-commerce sites.
  • Some times when the delivery of the products get delayed, the customers refuse to take the products and the charges for return and other taxes have to be born by the E-tailing site.
As every method of payment has pros and cons, some steps can be taken to reduce the cons. The steps like confirming with the customer either by calling the customer or sending a mail before delivering the product can reduce the frauds and other issues related to COD. The return of the product to the service provider should be completely banned and the service providers should be intimated that this kind of service should not be supported by them.
Many E-commerce/E-tailing sites like Amazon, Ebay, Flipkart, Snapdeal etc. support COD to improve the sales. Selling/Listing the products on Ebay, Amazon, Flipkart, Etsy, Lazada groups, Facebook etc. can be easily done through E-commerce software called SELLinALL.
Labels:

Popular Posts

What you need to know about Gross Merchandise Value

By Anonymous
Gross Merchandise Value (GMV) is defined as the gross sales revenue generated over a period of time by an e-commerce platform before any deduction for fees or commission . It is used to track the growth rate of an e-commerce business since it measures the value of the total merchandise that has been sold through the site for a specific time period, quarterly, bi-annually, or annually. Gross Merchandise Value = Number of Goods sold x Price of goods sold This metric is useful for e-commerce businesses that buy and store the merchandise from suppliers and delivers to customers when purchases are made. However, it cannot be used as a standalone metric for all online retail platforms. For e-commerce sites that operate as a Customer-to-Customer (C2C) business, they do not physically manage the goods. The total commissions generated and accrued expenses, such as delivery fees, advertising, return expenses incurred are more important to track for this business model. This is also known as Gro
Post a Comment
Read more

5 Major challenges faced by e-Commerce sellers and ways to overcome it!

By Anonymous
Based on a report by Google and Temasek Holdings, Southeast Asia’s (SEA) digital market could exceed US$200 billion before 2025. Southeast Asia’s digital economy is forecast to triple its size in the next 5 years. Read more on the challenges faced as a seller in the E-commerce marketplace, to help you decipher and be part of this immensely growing economy. E-commerce stores are on the rise due to a numerous reasons.  As far as market association is concerned, E-commerce sites already have an existing network of buyers. So, selling your products becomes relatively easy as branding and advertising is already taken care of.As  Sigmund Freud 's had rightly said  “ I carefully consider my decisions as everything comes with pros and cons! ”  Marketplace Management When it comes to South-East Asian E-commerce market, the most underestimated struggle is  Fragmentation  i.e. there are a number of e-commerce platforms in ASEAN countries attracting significant traffic, making
Read more

Buy Online, Pickup in Store

By Anonymous
A National Retail Federation study on Consumer Views in late October 2019 revealed that70% of the survey participants would pay for a Buy-online, pick-up-in-store service (BOPIS). BOPIS has emerged as a convenient option not only for consumers but retailers that invested in brick-and-mortar stores. Growth in online retail sales was overtaking traditional brick-and-mortar retail before the pandemic and BOPIS was being adopted by top retailers. With the onset of the pandemic in 2020, a Digital Commerce 360 survey in late 2020 showed results that 43.7% of the top 500 retailers with physical stores were offering BOPIS — up from 6.9% before the pandemic started. BOPIS, also known as click-and-collect or curbside- pickup provides a safe, contact-free way to shop online and pick up the ordered items. In order to implement BOPIS, a retailer needs to implement the following tools: 1) A website or app where customers can shop and place orders for the products online 2) A brick-and-mortar locatio
Post a Comment
Read more

Search This Blog